Investing in real estate is considered among investors one of the safest bets. However, many people have no idea how to do it and whether it will be worth the effort and money.
In this article, you will take a look at 6 books which will educate you on real estate investing. Not only will you find out about the importance and benefits of buying and renting the property but also learn more about the laws and legal framework of this sector.
The Book on Rental Property Investing
Are you 21 and want to make money from real estate? Well, that’s what actually the author of One Up On Wall Street: How to Use What You Already Know to Make Money in the Market, Brandon Turner, has done. When he was that age he bought his first property and ever since has built a career and an impressive real estate portfolio.
The book itself is a 400-page read on how to make an investment in the rental business and earn a passive (or active, depends on what you actually aim for) income through your investments. It focuses on rental property investing and how to fund these purchases. It also advises on how to find good tenants and manage your expenses. Despite its 400 pages, the book is almost devoid of fluff and unnecessary and boring details. In addition, the author’s style is “hilarious” and he does know how to make fun of such complex ideas.
The main questions this book answers are:
- How can I succeed in a field where many fail? What do you need to become a good real estate investor?
- What kind of strategy to use and start investing? Brandon gives more than one idea how to achieve that.
- How can I find the best and most profitable deals? Having money to invest is not sufficient; you need to find the best properties so that you can have great returns.
- How can I find money to fund my purchases? What if you don’t have money to buy a nice house to rent? Well, Turner will share some secrets with you.
- Taxes are so expensive, what can I do about that? Wealth comes with responsibilities and taxes. This book will give you valuable advice on how to minimize the amount of taxes you pay.
The Millionaire Real Estate Investor
If you want to become a real estate millionaire, first you need to understand the “personal” side of being rich, successful and famous. This is how writer Gary Keller begins his bestseller – The Millionaire Real Estate Investor.
Before he goes into some specific details and tips, he busts some of the most common myths about finances and being a millionaire: investing is suitable for a small group of people of superior intelligence. Actually, Keller disagrees and points out that this is a skill you can learn, the way we can learn Spanish, Arabic or how to install Windows 10 if we want to.
The whole book is something like a four-step guide on how to become a millionaire investing in real estate, focusing the four steps:
- “Think a Million”: In this step, Keller teaches you how to develop the mindset of a real estate millionaire. Set high goals, increase your income and move on to the next step.
- ”Buy a Million”: Here the author develops his idea of being smart when buying property. If you can find a home below market prices, then go for it – buy, don’t sell! Now that you have the appropriate mindset
- ”Own a Million”: That’s the third step. If you have made the previous step, now you have to “pay off” this million and actually own the property.
- ”Receive a Million”: You have bought a nice place, paid off the debt, then you can start earning handsome passive income.
Building Wealth One House at a Time by John Schaub
The fourth book in this article will show readers how to increase their wealth by investing in real estate. According to John Schaub, renowned real estate guru, most people investing in real estate overthink matters and one should have a more simplistic approach. The writer has developed his own program how to become richer by patiently and gradually investing in property.
To begin with, Schaub thinks that any person should apply several important things before they start investing: they need to have a good plan, then take action and they need to be persistent and patient.
The author suggests a 2-step process: first, you need to buy a house and the second step is to rent it out. John, whose experience in the real estate sector is more than 30 years, also advises his readers on practical things, such as how to find the best deals, what kind of questions to ask owners, real estate agents, etc and where to find those offers. He also focuses on quality when investing rather than quantity.
In the book, you will find abundance of details, information, data on case studies as well as examples, figures and analyses of properties. If you look at them carefully and try to understand them, they can help you a lot when making the right decision.
The Book on Investing in Real Estate With No (and Low) Money Down by Brandon Turner
Investing in real estate is definitely something each investor needs to know about. Brandon Turner will educated you on this topic and show you some great strategies and teach you precious lessons.
What can you find in the book?
- You don’t need lots of money – most people think that investing in real estate requires large amounts of cash, but Turner will prove them wrong. He will show you how to build the mindset and achieve your financial goals with little money.
- Be creative – The author firmly believes that we have to use creativity when it comes to making financial decisions. According to him, one needs a creative mind so that they can make various, not run-of-the-mill investments.
- Find partners – Well, if you want to invest you have to be ready to find partners or even people who are willing to lend their money to you. We all know how expensive properties are nowadays.
- Overcome the difficulties – No only will Mr. Turner shows you the intricacies of his strategies but also the problems that are linked to them as well as how to deal with them once they occur.
- Use various strategies – you shouldn’t just buy real estate and stop there. You can use it or any other methods to monetize your ownership or ideas.
All in all, I recommend this book to anyone – from rookies to pros. It will present various approaches and strategies that might suit your current needs, desires, and abilities.
What Every Real Estate Investor Needs to Know About Cash Flow… and 36 Other Key Financial Measures by Frank Gallinelli.
If you are a real estate investor, then Frank Gallinelli’s What Every Real Estate Investor Needs to Know About Cash Flow is a book you must read. Gallinelli is a practical person and will give you 36 practical tips and calculations which will definitely give you precise information about your real estate investment and how you can increase your returns.
According to the author, investing in real estate has four main advantages and they are: loan amortization, cash flow, long-term appreciation and a serious tax advantage
In the first five chapters, you will take a look at the main ideas and concepts in the book. In the other chapters, Gallinelli will discuss 36 practical calculations regarding cash flow. There you can find tons of resources you may use as well as charts and examples that will complement your calculations.
Which aspects of real estate investment do the book cover?
- How profitable your property is
- Profit Investment Ratio
- How attractive your property is
- The annual income generated by the real estate
- The capitalization rate
- The current value of the estate
At the end of the book, you can find a link of the author’s website where you can check out a programme (spreadsheet) that will do all the maths for you prior to buying a house. The only thing you need to do is reach the end. Overall, it’s worth trying.
Every Landlord’s Legal Guide by Marcia Stewart
Owning real estate is not only a plus, it is a responsibility. Maybe you have a foreclosure or having a hard time paying your mortgage? Why don’t you take advantage of your property and turn the negative into positive? As an owner, you need to know all the rules and laws and live by them if you want your business to be legal and successful. Every Landlord’s Legal Guide by Marcia Stewart and Janet Portman is the book you need should you become a landlord in the future.
- This interesting book will teach you how to:
- Pick out the best tenants, how to screen them and make the right choice
- Prepare all the legal documents and agreements, what to include and what to avoid.
- Find the best person/ company in charge of your real estate
- Maintain and repair your real estate
- Deal with tenants who refuse to pay their rent
- End a contract should the tenants stop paying
- Deal with tenants trying to lease the property using AirBnb
- What to do if a tenant passes away on your property
The book is well-structured and easy to follow, and it also offers a CD with templates of all the legal documents you need. The best thing about this book is that it is regularly updated so that it can reflect all changes in laws that might affect the agreements or anything else.